A new report by KPMG and CREDAI published this month reveals how the India’s senior living market, projected to grow from 157 million seniors (11% in 2024) to 346 million (over 20% by 2050), remains underpenetrated. Innovative financing models, combined with robust policy reforms and public–private partnerships, are set to transform this untapped sector into a lucrative, sustainable asset class. In this first part of our story, we share major trends and outlook for the senior living market.
India is on the cusp of a demographic revolution that presents a tremendous opportunity for real estate developers. According to KPMG’s and CREDAI’s jointly published March 2025 report, The Rise of Silver Generation: Transforming the Senior Living Landscape, the country’s elderly population currently stands at around 157 million—representing 11% of the total population in 2024—and is projected to soar to approximately 346 million, or over 20% of the population, by 2050. This staggering growth not only mirrors global trends noted by the World Health Organization—where the share of people over 60 is expected to double from 12% to 22% between 2015 and 2050—but also underscores a unique market opportunity in India.
Despite the dramatic increase in senior citizens, the organized senior living market in India remains in its infancy. Currently, penetration rates are less than 0.5%, with only just over 21,000 units in operation nationwide. In cities such as Coimbatore, Chennai, Bengaluru, and Pune, where senior populations are growing robustly—with Coimbatore’s market leading at a modest 0.7%—the opportunity for high-quality, purpose-built senior living communities is vast. The low market penetration indicates that real estate developers have a largely untapped market, ripe for innovation and growth.
Several factors are converging to drive this demand. The traditional joint family structure is giving way to nuclear families, leaving many seniors without the close-knit support system they once enjoyed. Moreover, with an increase in life expectancy—from 62.7 years in 2000 to 72.0 years in 2023—and a declining fertility rate (from 3.4 to 2.0 births per woman), India is witnessing a transformation in its social fabric. Additionally, the growing influence of non-resident Indians, who bring global perspectives on senior care, along with rising disposable incomes among older adults, is further fuelling demand for modern, community-centric senior living facilities
The evolving market dynamics have also spurred the development of innovative operating models tailored to the unique needs of senior residents. Real estate developers are exploring diverse financial frameworks, including freehold sale models, pure rental models, and leasehold structures that incorporate Deferred Management Fees (DMF). These models offer attractive post-tax internal rates of return—ranging between 15-25% for independent living projects and approximately 12-15% for assisted living facilities—while addressing operational challenges and ensuring long-term revenue streams.
Government policy support is expected to play a crucial role in unlocking this market potential. Initiatives such as Ayushman Bharat for older citizens, reverse mortgage schemes, interest subsidies, and public–private partnerships are being considered to enhance affordability and financial security for seniors. Such measures, combined with the need for innovative design that integrates advanced healthcare, community engagement, and safety features, are set to transform senior living into a resilient asset class within the real estate sector.
As India’s demographic landscape shifts, the convergence of rising senior populations, evolving family structures, and supportive policy reforms presents an unprecedented opportunity for real estate investors. With strategic planning and collaboration among developers, healthcare providers, and policymakers, the country is well-positioned to redefine senior living—transforming it from a niche market into a cornerstone of inclusive urban development and sustainable economic growth.
Source: “The Rise of Silver Generation: Transforming the Senior Living Landscape,” March 2025, KPMG, CREDAI
